Table of Contents _________________________ _________________________ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K _________________________ (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended April 30, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 0-12456 AMERICAN SOFTWARE, INC. (Exact name ...

American Software, Inc. (NASDAQ:AMSWA) Q4 2019 Results Conference Call June 19, 2019 5:00 PM ET Company Participants Vince Klinges - Chief Financial Officer Allan Dow - President Conference Call Participants Matt Pfau - William Blair Zach Cummins - B. Riley FBR Operator Good day, everyone. And welcome to today’s Fourth Quarter and Fiscal Year 2019 Preliminary Earnings Results Call for American Software. At this time, all participants are in listen-only mode. Later on you will have the opportunity to ask que ...

Table of Contents _________________ _________________ _________________ _________________ _________________ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended January 31, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________ to _________ Commission File Number: 0 ...

Financial Data and Key Metrics Changes - Total revenues for Q3 2019 decreased by 10% to $27 million compared to $30.1 million in the same period last year, reflecting a transition to SaaS and a difficult comparison due to a large license fee transaction in the prior year [6][10] - Subscription fees increased by 43% to $3.7 million from $2.6 million year-over-year [6] - Software license fee revenues decreased by 71% to $1.7 million from $6 million in the same period last year [6] - Overall gross margin was 52% for the current quarter, down from 57% in the prior year [8] - GAAP net income decreased by 58% to $2.3 million or $0.07 per diluted share compared to $5.6 million or $0.18 per diluted share in the same period last year [10] Business Line Data and Key Metrics Changes - Cloud services' annual contract value (ACV) increased by approximately 48% to $16.1 million compared to $10.9 million in the same period last year [6] - Professional services and other revenues were $10.2 million, slightly down from $10.3 million year-over-year [7] - Maintenance revenues increased by 2% to $11.4 million compared to $11.2 million last year [7] Market Data and Key Metrics Changes - International revenues accounted for approximately 17% of total revenues, down from 20% in the prior year quarter [11][14] - Year-to-date international revenues were 19% of total revenues compared to 20% for the same period last year [14] Company Strategy and Development Direction - The company is focused on transitioning to a software-as-a-service (SaaS) engagement model, which is expected to improve financial predictability and profitability [16][18] - The company aims to deliver a digital planning suite to enhance customer management from product concept to delivery, facilitating a more connected enterprise [18][20] - A new Executive Vice President of Global Sales has been appointed to lead the direct sales force, focusing on enterprise companies undergoing supply chain transformation [20][21] Management's Comments on Operating Environment and Future Outlook - Management noted a disciplined review of capital spending by customers, but did not observe a pullback in project flow [30] - The company expects the percentage of recurring revenue to continue increasing, enhancing financial predictability [18] - Management expressed confidence in the ability to grow both revenue and profitability during the transition to a SaaS model [22] Other Important Information - The company reported cash and investments of approximately $84.2 million at the end of January 31, 2019 [15] - Deferred revenues increased to $32.9 million, and shareholder equity stood at $114 million [15] Q&A Session Summary Question: Impact of new EVP of Global Sales on go-to-market strategy - Management emphasized the importance of focusing on customers with transformational supply chain strategies and highlighted the new EVP's experience in high-growth environments [25] Question: License decline due to SaaS transition vs. last year's large transaction - Management indicated that both the SaaS transition and an unusually large transaction last year contributed to the decline [26][27] Question: Customers' spending patterns amid economic uncertainty - Management noted a strong project pipeline but mentioned a more thorough review process for capital spending [30] Question: Capitalized R&D increase and future expectations - Management explained that increased R&D efforts were behind the jump in capitalized R&D, which is expected to return to trend levels [31] Question: Progress in SaaS transition and client adoption - Management stated they are at the midpoint of the transition, with 60-70% of new customer engagements leaning towards the subscription model [36] Question: Competitive positioning in the marketplace - Management highlighted the depth of capability and lower risk of deployment as key competitive advantages [40][41]